Ambani brothers dialled deal at niece's wedding do at Antilla
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Mukesh threw a party to celebrate the wedding of his niece Nayantara in Antilla. It was here that the two brothers discussed coming together for business purposes.Reliance Industries Ltd.
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MUMBAI: Early pointers to Tuesday's optic fibre network deal that has brought the Ambani family back into the picture-perfect frame of a happy family, were visible when billionaire brothers Mukesh and Anil came together to celebrate their father Dhirubhai Ambani's birth anniversary at Chorwad in Gujarat two years back. It was then that their mother Kokilaben, often seen as a binding figure between the two brothers, used the line "hum sab saath hain", hinting at a possible partnership in the days to come.
Ever since then speculation has been rife of a business deal between the two brothers, especially so in the telecom business. But the deal that was struck on Tuesday actually got triggered early this year, when in January, Mukesh threw a party to celebrate the wedding of his niece Nayantara (daughter of sister Nina Kothari) at his 27-storeyed residence Antilla. It was here that the two brothers discussed coming together for business purposes.
Over the last two months, sources said Manoj Modi, Mukesh's right hand and Amitabh Jhunjhunwala, Anil's trusted lieutenant, have had several rounds of meetings to hammer out an agreement, with the blessings of the two brothers. People close to the family said the brothers meet once every two-to-three weeks at Maker Chambers IV (where Mukesh has his office) — to "discuss everything under the sun".
As for the genesis of this deal, sources said a telecom baron approached Mukesh about a year ago for a telecom infrastructure collaboration but the latter preferred to go with younger brother Anil. The reason, it appears, was rooted in business logic: Mukesh and the telecom baron in question are set to be competitors in the 4G space.
"Mukesh got spectrum over two years ago. With his superb execution skills, he could have built a network, but it didn't make sense. Anil's Reliance Communications' network was already in place," said a source. The deal announced on Tuesday, involves Mukesh using Anil's optic fibre network for the launch of his telecom business. This is just one part of a potentially larger business co-operation between the two, involving thousands of crores. The co-operation extends to both accessing each other's existing as well as future telecom infrastructure including towers.
This deal may be the first one so far, but there could be more alliances between the two in other business areas as well, said industry analysts. There is wide speculation that the brothers may be looking at entering the banking sector. However, these are unconfirmed reports. The point is the brothers, who have been warring for a decade since the passing away of their father, appear to have buried their differences.
Ever since then speculation has been rife of a business deal between the two brothers, especially so in the telecom business. But the deal that was struck on Tuesday actually got triggered early this year, when in January, Mukesh threw a party to celebrate the wedding of his niece Nayantara (daughter of sister Nina Kothari) at his 27-storeyed residence Antilla. It was here that the two brothers discussed coming together for business purposes.
Over the last two months, sources said Manoj Modi, Mukesh's right hand and Amitabh Jhunjhunwala, Anil's trusted lieutenant, have had several rounds of meetings to hammer out an agreement, with the blessings of the two brothers. People close to the family said the brothers meet once every two-to-three weeks at Maker Chambers IV (where Mukesh has his office) — to "discuss everything under the sun".
As for the genesis of this deal, sources said a telecom baron approached Mukesh about a year ago for a telecom infrastructure collaboration but the latter preferred to go with younger brother Anil. The reason, it appears, was rooted in business logic: Mukesh and the telecom baron in question are set to be competitors in the 4G space.
"Mukesh got spectrum over two years ago. With his superb execution skills, he could have built a network, but it didn't make sense. Anil's Reliance Communications' network was already in place," said a source. The deal announced on Tuesday, involves Mukesh using Anil's optic fibre network for the launch of his telecom business. This is just one part of a potentially larger business co-operation between the two, involving thousands of crores. The co-operation extends to both accessing each other's existing as well as future telecom infrastructure including towers.
This deal may be the first one so far, but there could be more alliances between the two in other business areas as well, said industry analysts. There is wide speculation that the brothers may be looking at entering the banking sector. However, these are unconfirmed reports. The point is the brothers, who have been warring for a decade since the passing away of their father, appear to have buried their differences.
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